We are constantly working to improve the site, and to add more laws to our database. If you are receiving value from using our site please consider signing up for a subscription to support the site and to get many additional benefits for you.
Key Benefits:
(You can close this ad by clicking anywhere on the page.)
Key Benefits:
The Senate and Chamber of Deputies
of the Argentine Nation
meeting in Congress, etc.
forcefully sanctioned
Law:
ARTICLE 1 Appropriate the MODIFICATORY PROTOCOL to the Convention of the 4th APRIL of 1979 between the Government of the ARGENTINA REPUBLIC and the Government of the FRANCE REPUBLIC to avoid the DOBLE IMPOSICION and PREVEN THE FISCAL EVASION IN MATERIA OF IMPUESTIES ARTICLE 2 Contact the national executive branch.IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE DAYS OF THE JULY OF THE YEAR DOS MIL SIETE.
# 26,276 EL
ALBERTO E. BALESTRINI. . JOSE J. B. PAMPURO. . Enrique Hidalgo. . Juan H. Estrada.
PROTOCOL MODIFICATORY
to the Convention of 4 April 1979 between the Government of the Argentine Republic and the Government of the French Republic to avoid double taxation and to prevent tax evasion on income and property taxes.
The Government of the Argentine Republic and the Government of the French Republic, wishing to amend the Convention of 4 April 1979 between the two Governments to avoid double taxation and to prevent tax evasion on income and property taxes (hereinafter referred to as "the Convention"), have agreed:
ARTICLE 1
Article 2, paragraph 3, of the Convention is deleted and replaced by:
"3. Current taxes to which the Convention applies are, in particular:
(a) In the case of Argentina:
(i) the income tax;
(ii) Personal property tax;
(iii) the presumed minimum gain tax,
including all retentions in the source, any account tax or any advance payment on these taxes;
(hereinafter referred to as "Argentine tax").
(b) in the case of France
(i) Income tax ("the sur le revenu");
(ii) Generalized social contributions and contributions for the reimbursement of social debt ("the généralisées et les contributions pour le remboursement de la dette sociale");
(iii) the tax on societies ("Iriv sur les sociétés");
(iv) the solidarity tax on the patrimony ("l.impot de solidarité sur la fortune");
including all retentions in the source, any account tax or any advance payment on these taxes;
(hereinafter referred to as "French tax").
ARTICLE 2
Article 24 of the Convention is deleted and replaced by the following:
"ARTICLE 24
ELIMINATION OF DOBLE IMPOSITION
1. In the Argentine Republic, double taxation will be avoided as follows:
When a resident of Argentina obtains income or possesses property elements that, in accordance with the provisions of this Convention, may be imposed in France, Argentina will allow to deduce:
(a) of the income tax of this resident, an amount equal to the income tax, effectively paid in France;
b) of the tax on the estate of this resident, an amount equal to the property tax, actually paid in France.
However, in one and the other case, this deduction may not exceed the portion of the Argentine tax, calculated prior to deduction, corresponding to the incomes or property, according to the case that can be imposed in France.
2. In the case of France, double taxation will be avoided as follows:
(a) Notwithstanding any other provision of this Convention, rents that may be submitted or are only subject to imposition in Argentina in accordance with the provisions of this Convention are taken into consideration for the calculation of the French tax when they are not exempt from the tax on societies ("the sociétés") under French domestic law. In this case, the Argentine tax cannot be deducted from these incomes, but the resident of France has the right, without prejudice to the conditions and limits provided for in subparagraphs (i) and (ii), to a tax credit on the French tax. This tax credit is equal to:
(i) for all incomes not mentioned in (ii), the amount of the French tax on these incomes provided that the resident beneficiary of France is subject to the Argentine tax on these incomes;
(ii) for the incomes subject to the tax on the companies ("l-impot sur les sociétés") referred to in Article 7 and in Article 13 (2) and for the rents referred to in Articles 10, 11 and 12, in Article 13, paragraph 1, in Article 15, paragraph 3, Article 16, and in Article 17, paragraphs 1 and 2, to the amount of the tax paid in Argentina in accordance with the provisions of these provisions;
(b) for the implementation of the provisions of subparagraph (a) (ii) above, and for the incomes specified in Articles 11 and 12, the gross amount of tax credit shall be equal:
(i) to 15 per cent of the gross amount of the income specified in Article 11 (3), (b), or of the interests which are totally or partially exempted by the Argentine Government under a special legal rule.
(ii) With regard to the income specified in Article 12, paragraph 3, subparagraphs (b) and (c), it shall be 20 per cent of the gross amount of such rents.
(c) A resident of France, who possesses property elements that may be imposed in Argentina, in accordance with the provisions of Article 23, paragraphs 1, 2 and 4, may also be imposed in France on the grounds of such elements. The French tax will be calculated by deducting a tax credit equal to the amount of the tax paid in Argentina because of this estate. However, such a tax provision may not exceed the amount of the French tax for such assets.
(d) (i) It is understood that the term "amount of the French tax corresponding to these incomes" used in subparagraph (a) designates:
- when the tax due for these incomes is calculated by the application of a proportional rate, the product of the amount of net income considered by the rate that is actually applied to them;
- when the tax due for the reason of these incomes is calculated by the application of a progressive liquid, the product of the amount of the net income considered by the rate resulting from the ratio of the tax effectively due to the total net income taxable under French law and the amount of this total net income.
This interpretation is applied by analogy to the expression of the French tax for the said patrimony used in subparagraph (c).
(ii) Without prejudice to the provisions of sub-paragraph (b), it is understood that the term “meaning of the tax paid in Argentina” used in subparagraphs (a) and (c) designates the amount of the Argentine tax actually borne on a definitive basis on the basis of the incomes or elements of the property considered, in accordance with the provisions of this Convention, by the resident of France taxable on the basis of these incomes or property elements under French law.”
ARTICLE 3
1. Each of the Contracting States shall notify the other of compliance with the procedures required in respect of the entry into force of this Amendment Protocol. It will enter into force on the first day of the second month following the day of receipt of the last of these notifications.
2. The provisions of this Amendment Protocol shall apply for the first time:
(a) In the case of taxes received for retention at the source, the amounts taxable from the calendar year following the year of entry into force of this Amendment Protocol;
(b) In the case of other income taxes, the corresponding income, as appropriate, to any calendar year or exercise that is initiated, after the calendar year during which the Modification Protocol entered into force;
(c) In the case of property taxes, taxpayers whose taxation occurs after the calendar year during which the Amendment Protocol entered into force.
3. This Amendment Protocol shall remain in force at the same time as the Convention. However, with regard to Article 24, paragraph 2, (b) of the Convention, as set out in Article 2 of this Amendment Protocol, it is agreed that its provisions shall cease to apply at the end of a period of five years from the date of entry into force of this Amendment Protocol. It is understood that Argentina will then apply the provisions provided for in Article 21 of its law of tax on current profits at the date of signature of this Amendment Protocol.
In faith of which, the signatories, duly authorized to do so, have signed this Protocol.
Made in double copy in Buenos Aires, on 15 August 2001, in Spanish and French, both being equally authentic.
